Gold And Silver Prices Trade Lower On Gains In Dollar, US Treasury Yield

On Gold and silver futures on the MCX traded lower as there was seen a rebound in the dollar index, which dulled the bullion's appeal. Gold futures contract traded weak by Rs. 25 at Rs. 47437 per 10 gm.

Meanwhile, traders in the market await cues from the US central bank's meeting that signaled to keep low rates. Also, the US treasury yield remained near the 1.57 per cent level.

"Gold weakened today as the US dollar index tried to recover from the March low set in the previous session as market players positioned for a Fed decision tomorrow. Supporting gold price is rising virus cases, mixed economic data from major economies and loose monetary policy stance. However, weighing on price is the lack of investor buying and general progress on the vaccination front," said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.

"Gold along with US dollar and bond yields may remain choppy ahead of the Fed decision however general bias remains on the upside amid rising virus cases and hopes of loose monetary policy of major central banks."

In the international markets, spot gold was steady at $1780.86 per ounce.U.S. gold futures were little changed at $1,780.10 per ounce.

Price outlook for gold

"We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold June support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Palladium prices after hitting an all time high of $2941 declined.

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